Singapore’s lawmakers have amended an Insurance coverage Act, successfully halting Allianz‘s proposed $1.7bn (S$2.24bn) acquisition of a majority stake in an area insurance coverage firm, Revenue Insurance coverage.
This modification requires the monetary regulator to additionally acquire approval from the related authorities ministry for transactions involving insurers which are cooperatives or linked to cooperatives, acknowledged Bloomberg.
The legislative change follows the federal government’s declaration that the transaction with Revenue Insurance coverage wouldn’t serve the general public curiosity in its present state.
Considerations had been raised in regards to the insurer’s means to proceed its social goal as a cooperative post-acquisition.
Singapore Transport Minister and Financial Authority of Singapore (MAS) deputy chairman Chee Hong Tat stated: “We’re making the amendments on an pressing foundation as a result of the proposed transaction is underneath lively consideration by Revenue’s shareholders.”
Chee emphasised that the federal government’s issues weren’t with Allianz’s repute however with the specifics of this transaction.
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The brand new laws grants the minister overseeing MAS the authority to dam offers involving cooperative-run insurers.
The up to date legal guidelines empower the MAS minister to reject functions involving insurers like Revenue if deemed within the public curiosity, with out the choice for attraction. Chee offered the pressing Invoice, highlighting the lively consideration of the transaction by Revenue’s shareholders.
In July this 12 months, Allianz and Singapore’s Revenue Insurance coverage introduced discussions a couple of potential partnership.
Allianz’s plan to buy a minimum of a 51% stake in Revenue from NTUC Enterprise Co-operative has confronted widespread criticism.
Revenue Insurance coverage, which acquired the belongings of Revenue Co-operative in 2022, is majorly owned by NTUC Enterprise with a 72.8% stake.
